As AI Data Center Demand Surges, Taiwan Semiconductor Manufacturing Could Be the Biggest Long-Term Beneficiary

The artificial intelligence (AI) infrastructure market is booming, with demand for AI data centers surging. Chip designer Nvidia (NASDAQ: NVDA) has predicted that AI data center capital expenditures (capex) could grow at a 40% compound annual growth rate (CAGR) over the next five years to between $3 trillion to $4 trillion by 2030. Given the current market trends, that doesn't seem like a stretch. Right now, the big three cloud computing companies -- Amazon, Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) -- are all aggressively spending on data center capex with plans to significantly increase their spending in 2026. The same holds for neocloud companies, like Nebius Group and CoreWeave. Importantly, this spending is being driven by insatiable demand for compute services, which is seeing demand outstrip capacity even with this huge spending.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool